The recent recession has had a profound effect on consumer buying habits. Rather than buying in bulk, and often on credit, consumers are buying less frequently and under their own version of just-in-time. These shifts in consumption habits have led to increased uncertainty in forecasting demand, prompting shippers to change how they produce, package, price and deliver goods to market.
Obviously, these macro changes are disrupting long-established purchase cycles. To further complicate the situation, many big box retailers are implementing more rigorous ”must arrive by” dates with expensive charge-backs if a shipper misses a delivery window.
Beyond reconfiguring their supply chains, shippers are re-evaluating both their preferred mode of transportation and the carriers they use to move the freight. Gone are the days of relying solely on the low-cost transportation providers. Shippers are turning to premium transportation providers that can react quickly to change, provide optimized shipping solutions based on total costs, and deliver to market safely and securely. This flight to quality can be seen in manufacturers of everything from produce to consumer electronics.
How are premium transportation providers different? First, they have standard operating procedures for handling high-value goods. Second, they are comfortable operating in a dynamic environment. Third, they combine robust technology with experienced people to quickly analyze and select optimal shipping solutions. Finally, they provide complete visibility to the entire supply chain so that all stakeholders can prepare for delivery while the shipment is in transit.
The new economy will force shippers to evolve their supply chains for maximum effectiveness and efficiency. However, the winners in the short- to mid-term are those premium transportation providers that can provide a real and immediate strategic advantage to shippers.